This dissertation is three empirical studies of U.S. and foreign multinational corporations' financing and investment behavior. The research addresses three questions from both the economic and finance literature. First, how do exchange rates affect the value or profits of the firm? Second, how do firms manage such risk? And third, do firms alter their investment strategies in response to exchange rate movements? Each study uses firm-level data (including previously unavailable data) to control for firm-specific effects that may be driving earlier empirical results. Also, this research provides some information on the interrelationships between strategic and financial decisions facing multinational firms. These decisions have historically been studied separately.
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